PRESS RELEASE
Ad hoc announcement pursuant to Art. 53 listing rules:
Financial highlights
- Group assets under management increased to CHF 126.0 billion1 as at
30 June 2021 (compared withCHF 122.0 billion as at31 December 2020 )
- Underlying profit before tax of CHF 0.8 million in the first half of 2021 (compared with underlying loss of
CHF 2.0 million in first half of 2020)- IFRS net loss of
CHF 2.7 million (compared with a net loss ofCHF 390.1 million in
first half of 2020) - Investment management saw net client outflows of
CHF 2.2 billion in the first half of 2021, with private labelling recording net client inflows ofCHF 0.8 billion - 74% of investment management assets under management outperformed their benchmark over five years
- IFRS net loss of
Strategic progress
- Distribution footprint now aligned with client demand and growth opportunities
- Responding to client demand with new sustainable investment offerings
- Distribution strategy successfully broadening client interest across investment strategies, with positive flows into equities
- New leadership for private labelling in Luxembourg
- Increased focus on wealth management with appointment of new leadership
- Invested in technology upgrade to support sustainable growth
- On track to deliver
CHF 15 million savings for FY 2021
Peter
“We are seeing an encouraging level of client interest reflecting our strong investment performance and although we saw outflows in investment management overall, we saw net inflows across our equity platform and have achieved an increasingly diversified pipeline of client activity in the first half with demand across our core, thematic, liquid alternative and sustainable strategies.”
- Investment management
- Assets under management totalled
CHF 34.8 billion as at30 June 2021 , compared withCHF 35.9 billion as at31 December 2020 - Net outflows of
CHF 2.2 billion were only partly offset by net positive foreign exchange movements and market movements ofCHF 1.9 billion in first half of 2021 - While flows were negative in the first half of 2021 after a positive last quarter for 2020, client interaction continues to be encouraging and our pipeline is increasingly diversified across capabilities
- Several equity strategies enjoyed net positive inflows in the first half of 2021, including GAM Star Disruptive Growth, GAM Star European Equity and GAM Luxury Brands Equity
- Assets under management totalled
- Private Labelling
- AuM as at
30 June 2021 totalledCHF 91.2 billion 1, compared withCHF 86.1 billion as at31 December 2020 - Net inflows of
CHF 0.8 billion and positive net market and foreign exchange movements ofCHF 4.3 billion were recognised in first half of 2021
- AuM as at
- Investment performance continues to be good
- Over the five-year period to
30 June 2021 , 74% of AuM in funds outperformed their respective benchmark, compared with 70% as at31 December 2020 - Over the three-year period to
30 June 2021 , 34% of AuM in funds outperformed their respective benchmark, compared with 23% as at31 December 2020 - Of GAM’s AuM tracked by Morningstar, 48% and 68% outperformed their respective peer groups over the three- and five-year periods to
30 June 2021 , respectively, compared with 56% and 61% as at31 December 2020 2
- Over the five-year period to
- Progress on growth pillar of our strategy
- Strengthened presence in
Asia , a strategic growth market for GAM, with the opening of ourSingapore office and two new distribution hires - Appointment of
Martin Jufer in the new role of Head of Wealth Management, based inZurich and Sean O’Driscoll as new Head of Private Labelling Funds and CEO of Luxembourg - GAM wealth management growth to be driven from our existing base of private clients in
Switzerland , theUK and new opportunities inAsia - New appointments in equity and fixed income investment teams, investment specialist teams and distribution, as well as internal promotions for high-performing talent
- Strengthened presence in
- Sustainable investing
- Successful launch of the GAM Sustainable Local Emerging strategy with
CHF 287 million of assets under management as at30 June 2021 - New climate bond strategy and a sustainable version of GAM Systematic Core Macro to be launched later this year
- GAM Star Emerging Equity to be repositioned as GAM Sustainable Emerging Equity
- GAM Stewardship Report published with enhanced levels of transparency
- GAM certified as a CarbonNeutral® company for operational emissions
- Joined Net Zero Asset Managers initiative, committing to supporting investing aligned with the goal of net zero by 2050 or sooner
- Successful launch of the GAM Sustainable Local Emerging strategy with
- Technology platform upgrade progressing well
- The implementation of a new cloud-based SimCorp platform is core to GAM’s efficiency plan, with decommissioning of legacy systems having begun
- Equity capabilities successfully migrated; by the end of 2021, all our investment portfolios are planned to be on SimCorp, providing a resilient backbone for our operations and the capability to deliver enhanced levels of service and reporting for our clients
- Agile technology successfully rolled out across the firm to facilitate hybrid working and enhance collaboration
- Implementation of Workday, our new Finance and HR platform completed, with legacy systems being decommissioned
- New Multrees technology platform implemented to serve wealth management business
- On track to deliver
CHF 15 million of cost savings- Fixed personnel and general expenses of
CHF 88.9 million , downCHF 8.8 million fromCHF 97.7 million in the first half 2020 - Our full year guidance for 2021 remains unchanged
- Fixed personnel and general expenses of
Investment management assets, flows and performance
Assets under management movements (CHF bn)
Capability | Opening AuM | Net flows H1 2021 | In liquidation | Market/FX H1 2021 | Closing AuM |
Fixed income | 17.1 | (1.2) | (0.8) | 0.5 | 15.6 |
Equity | 6.9 | 0.1 | - | 0.9 | 7.9 |
Multi asset | 7.5 | (0.3) | - | 0.4 | 7.6 |
Systematic | 2.9 | (0.6) | - | 0.1 | 2.4 |
Alternatives | 0.7 | (0.2) | - | - | 0.5 |
Absolute return | 0.8 | - | - | - | 0.8 |
Total | 35.9 | (2.2) | (0.8) | 1.9 | 34.8 |
Net flows by capability
Our fixed income strategies saw net client outflows of
In equity, net inflows amounted to
Net outflows from multi asset strategies were
Alternatives recorded net outflows of
Systematic saw net outflows of
Absolute return flows remained flat with inflows into the GAM Star EM Rates and GAM Star Alpha Technology funds being offset by redemptions from the GAM Talentum Enhanced Europe Long/Short and the GAM Star Lux Merger Arbitrage funds.
Private labelling assets and flows
Assets under management movements (CHF bn)
Fund domicile | Opening AuM | Net flows H1 2021 | Market/FX H1 2021 | Closing AuM |
Rest of | 51.2 | 1.5 | 1.9 | 54.6 |
34.9 | (0.7) | 2.4 | 36.6 | |
Total | 86.1 | 0.8 | 4.3 | 91.21 |
The new Head of Private Labelling, Sean O’Driscoll, will be bolstering our capabilities in Luxembourg, reflecting its importance within GAM’s growth plans.
As at
H1 2021 Group results
Net fee and commission income increased by 1% to
Personnel expenses decreased by 3% to
Variable compensation increased to
General expenses totalled
The operating margin stood at 3.6%, compared with negative 0.6% in H1 2020, mostly as a result of higher performance fees and a further reduction in expenses.
The underlying pre-tax profit was
H1 2020. This was also driven by higher performance fees and a further reduction in expenses.
The underlying tax expense for the first half of 2021 was
Diluted underlying losses per share were
The IFRS net loss was
Liquidity and capital management
Cash and cash equivalents as at
Adjusted tangible equity as at
Outlook
We expect the market environment to remain challenging but believe that we are well positioned to service client demand across a broad range of products. Our financial targets remain unchanged, reflecting our belief in the potential of our business and the scalability of the platform that we have built.
The presentation for analysts and investors of the H1 2021 results of
Upcoming events:
21 October 2021 Q3 2021 Interim Management Statement
For further information please contact:
Global Head of Communications and Investor Relations
T +44 20 7917 2241
Investor Relations Media Relations Media Relations
Jessica Grassi Kathryn Jacques Ute Dehn Christen
T +41 58 426 31 37 T +44 20 7393 8699 T +41 58 426 31 36
Visit us: www.gam.com
Follow us: Twitter and LinkedIn
About GAM
GAM is a leading independent, pure-play asset manager. The company provides active investment solutions and products for institutions, financial intermediaries and private investors. The core investment business is complemented by private labelling services, which include management company and other support services to third-party asset managers. GAM employed 652 FTEs in 15 countries with investment centres in
Disclaimer regarding forward-looking statements
This press release by
These forward-looking statements are subject to risks, uncertainties, assumptions and other factors that could cause the Company’s actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions, legislative, fiscal and regulatory developments, general economic conditions, and the Company’s ability to respond to trends in the financial services industry. Additional factors could cause actual results, performance or achievements to differ materially. The Company expressly disclaims any obligation or undertaking to release any update of, or revisions to, any forward-looking statements in this press release and any change in the Company’s expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.
1 Including
2 The peer group comparison is based on ‘industry-standard’ Morningstar Direct Sector Classification. The share class references in Morningstar have been set to capture the oldest institutional accumulation share class for each and every fund in a given peer group.
Attachment
- Ad hoc announcement_GAM Holding
AG HY 2021_Media release EN
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